Salesforce earnings top estimates, shares pop after hours

Yahoo Finance's Jared Blikre reports on Salesforce earnings and how the stock is popping after the market close.

Video Transcript

- Salesforce also reporting after the bell. For that, we'll bring in our very own Jared Blikre. Jared?

JARED BILKRE: That's right. We can see the stock popping about 4% in after hours trading, and that's after beats on most of the headline numbers here. So adjusted EPS for the quarter coming in at $0.84 a share, beating the street estimate by about $0.10, and that's versus, that's down a little bit from last year of $1.04. But also looking at the subscription and support revenue, that came in at $6.83 billion. That is up 25% year over year, and that's just slightly, slightly higher than the estimate of $6.8 billion.

Now, total revenue came in at $7.33 billion. That's up 26% year over year. And professional services and other revenue, that broke down to $498 million, beating the estimate of $467.5 million. Also, the current remaining performance obligations, those come to $22 billion. That's slightly higher than the estimate of $21.46 billion, but I think a lot of the estimate here is on their 2023 year forecast. So they're seeing 2023 revenue of $32 to $32.1 billion beats the estimate of $31.76 billion. Now adjusted EPS for the year, the full year guidance, and also the quarter guidance, a little bit short, but that's coming in at 4.62 to 4.64. Or, excuse me, $4.62 to $4.64. Estimate was for higher at $4.75.

And, now finally, their estimate for the first quarter, adjusted EPS of $0.93 to $0.94. The estimate was for higher, $1.01. But they are beating on the revenue number. They're seeing first quarter revenue of $7.37 billion to $7.38 billion, higher than the estimate of $7.26 billion.

I do have a quote here from Amy Weaver, their president and CFO saying, "Fiscal 2022 was a remarkable year for Salesforce. I am particularly pleased with our focus on disciplined and profitable growth, which drove record levels of revenue margin and cash flow. Confident in the momentum of the business as we build an even stronger company in fiscal 23 and beyond." According to Bloomberg data, there are 42 buys, 7 holds, and 0 sells on the stock.

And let's get a quick picture of what the stock has been doing recently. Here it is over, over the last year. And you can see, like a lot of these stocks, especially the higher priced growth names, it has fallen off considerably from those highs in the fourth quarter of last year.